SAFE [Act] stands for
Secure And Fair Enforcement [for Mortgage Licensing Act of 2008]
Summary of purpose of SAFE Act
Encourage responsible behavior in mortgage industry, provide consumer access to information about LOs and registrants and facilitate collection & distribution of consumer complaints
NMLS stands for
Nationwide Mortgage Licensing System
CSBS stands for
Conference of State Bank Supervisors
AARMR stands for
American Association of Residential Mortgage Regulators
Licensing pre-education requirements (# of hours per subject)
3 hours - federal law
3 hours - ethics
2 hours -
non-traditional products
12 hours - electives
Licensing Continuing Education Requirements (# of hours per subject)
3 hours - federal law
2 hours - ethics
2 hours -
non-traditional products
1 hour - electives
3 reasons someone would be ineligible for licensing
1. Convicted of felony within 7 years
2. Convicted of felony
fraud, dishonesty or money laundering (ever)
3. Revoked license
in any state
Licenses expire on this date
12/31
Renewal period for licensing
November 1st – December 31st
Within how many days must the NMLS be notified of change of employment
30
Where must a unique identifier be placed
1. Applications
2. Any documents sent to borrower
3.
Advertisements
4. Business cards/Social Media
Maximum penalty a state can impose on an MLO
$25,000
How often can the commissioner investigate a licensee
As often as necessary
CFPB stands for
Consumer Financial Protection Bureau
RESPA stands for
Real Estate Settlement Procedures Act
RESPA is also known as regulation __
X
Summarize the purpose of RESPA
Mandates disclosures to educate borrowers, prohibits kickbacks & referral fees, protects consumer from excessive costs
Types of loans SCIB is applicable to
Purchase transactions on borrower’s primary residence
SCIB stands for
Special Cost Information Booklet
ABA stands for
Affiliated Business Arrangement
GFE stands for
Good Faith Estimate
Loan Estimate replaced ___ for most transactions
GFE
Closing Disclosure replaced ___ for most transactions
HUD-1
RESPA applies to
1st and 2nd mortgage transactions on:
• 1-4 unit residential
property
• condominiums
• manufactured homes
ABC loans refer to
Agricultural, Business, Commercial
Servicer may bill additional escrow $ to maintain a max of _____ in escrow $
1/6th of annual amount/2 months
Any escrow $ greater than ______ must be refunded to borrower within __ days
2 months + $50, 30
TILA stands for
Truth In Lending Act
TILA is also known as regulation __
Z
Summarize the purpose of TILA
Cost of credit must be disclosed
Advertising must be truthful and accurate
Rescission must be offered for certain transactions
Notice of right to rescind disclosure is applicable to this types of transaction
Non-purchase
Primary residence
# of days borrower is given the right to rescind for (+ definition of business day under this rule)
3 business days
Does not include day of signing
Everyday
except Sunday & federal holidays
# of copies notice of right to rescind must be sent
2 copies to each ownership interest
Amount of time given to rescind if lender does not provide proper amount of copies of notice of right to rescind
3 years
APOR stands for
Average Prime Offered Rate
HPML stands for
Higher Priced Mortgage Loans
APR thresholds for HPML loans (1st, 2nd, Jumbo)
1st:1.5% above APOR
2nd: 3.5% above APOR
Jumbo: 2.5% above APOR
Lender requirements for HPML (3)
1. Verify ATR
2. Pre-payment penalty limited for first 2
years
3. Escrow required for 5 years (unless co-op or condo)
HOEPA stands for
Homeownership & Equity Protection Act
HOEPA loans are also known as (2)High Cost Loans
Section 32 or High Cost Loans
HOEPA APR thresholds
1st liens: 6.5% above APOR
2nd liens: 8.5% above APOR
HOEPA points/fees thresholds
5% or more of loan amount
Lesser of $1,077 or 8% of loan amount
Exemptions to HOEPA
1. Reverse mortgages
2. 2nd homes/investment properties
3.
Construction loans
HOEPA points/fees thresholds
5% or more of loan amount
Lesser of $1,077 or 8% of loan amount
TRID stands for
TILA-RESPA Integrated Disclosure
Summary of the purpose of TRID
To inform consumers of risks associated with loan applying for Integrate Disclosures (LE and CD)
Length of time Loan Estimates must be retained
3 years
Length of time Closing Disclosures must be retained
5 years
LE timeline
3-7-3 rule
Initial LE sent within 3 days of
application, must wait 7 days from initial LE to close, revised LE
must be sent within 3 days of changes
Terms on LE must be available/valid for this length of time
10 days
LE cannot be provided after what
CD has been sent
Summarize the mailbox rule
Consumer is deemed to receive disclosures 3 business days after delivery
Discriminatory factors under ECOA
Marital
status
Race
Bearing of
children
Age
Religion
National origin
Sex
ECOA stands for
Equal Credit Opportunity Act
ECOA is also known as regulation __
B
Disclosure timing for notice of right to receive appraisal
Within 3 days of application
Disclosure timing for notice of action taken
Within 30 days of action taken
Disclosure timing for notice of adverse action
Within 30 days of application
Disclosure timing for notice of incomplete application
Within 30 days of application
Length of time lender must retain documents related to ECOA
25 months
Definition of elderly under ECOA
62 years or older
Exceptions to age discrimination under ECOA
Under 18 cannot enter into contract
62 years or older for
reverse mortgages/HECM
Under ECOA, lenders may not refuse these types of income (4)
1. Alimony
2. Child support
3. Pension, annuity, retirement
income
4. Public assistance
Length of time lender must retain documents related to ECOA
25 months
Definition of disparate treatment under ECOA
Not treating all applicants the same
3 ways a lender can label marital status
1. Married
2. Unmarried
3. Separated
HPA stands for
Homeowners Protection Act
Purpose of HPA
Facilitate cancellation of PMI
Disclosures associated with HPA (2)
1. Initial PMI notice
2. Annual PMI notice
HMDA stands for
Home Mortgage Disclosure Act
HMDA purpose
- Helps government identify discriminatory lending practices
- Ensures institutions are meeting needs of their community
HMDA is also known as regulation __
C
FCRA stands for
Fair Credit Reporting Act
FCRA purpose
To ensure accuracy, fairness & privacy of consumer information assembled by CRAs
FCRA is also known as regulation __
V
GLBA stands for
Gramm-Leach-Bliley Act
GLBA Purpose (summarize)
To ensure lenders protect non-public personal information
GLBA is also known as regulation __
P
Summarize difference between customer and consumer
Customer: continued
relationship
Consumer: isolated transaction
3 parts of GLB
1. Safeguards rule
2. Pretexting provisions
3. Financial privacy
NPI stands for
Non-public personal information
Summarize what is considered NPI
Personally identifiable financial information including the fact that there is a customer/consumer relationship
DNC stands for
Do Not Call
How often must telemarketers update call list with DNC registry
Every 31 days
Times that telemarketing calls are prohibited
Before 8am and after 9pm (their time zone)
Length of time telemarketing records must be retained
24 months
Purpose of USA Patriot Act
• Deter/punish terrorist attacks
• Fight funding of terrorism
& money laundering
CIP stands for
Consumer Identification Program
Suspicious Activity Reports (SAR) must be filed within __ days of detection
30
MAP stands for
Mortgage Acts & Practices
Purpose of MAP
To ensure advertising is fair and accurate
Length of time advertisements must be retained under MAP
24 months
Purpose of E-Sign Act
Allows borrower to sign documents electronically
Purpose of Fair Housing Act
Prohibits discrimination in renting, leasing, buying or selling residential property
Protected characteristics under Fair Housing Act
Marital
status
Race
Bearing of
children
Age
Religion
National
origin
Sex
+Disability
(ECOA
protections + Disability)